BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

SPECIALIST

BRIDGING LOANS

KNOWLEDGE BASE

It   is   sometimes   the   case   that   applicants   seeking   bridging   finance   simply   do   not   have   enough   available   equity   in   their   property   assets   to   satisfy   the   loan   to value   (LTV)   requirements   of   mainstream   lenders.   High   Street   lenders   with   conventional   funding   lines   need   to   respect   their   funding   covenants,   the   rules   by which their lending decisions are governed. By   contrast   lenders   with   a   more   diverse   funding   base   who   are   not   wholly   reliant   on   institutional   funding   lines   can   sometimes   be   more   flexible   and   consider bespoke security structures. They can look beyond just traditional property-based security. What forms can these Specialist Loans take? One   form   of   Specialist   Loan,   perhaps   best   be   termed   as   a   Private   Equity   Loan,   can   allow   applicants   to   offer   share   options   they   hold   as   the   principal   form   of security in instances where they do not have enough equity in their property. These share options would need to be held in a FTSE or AIM listed company. In   these   instances,   the   lender   will   take   a   ‘legal   wrap’   around   the   options   which   effectively   assigns   ownership   of   shares   if   the   loan   subsequently   defaults.   As an additional comfort the lender will probably also still take a charge against the applicant’s property despite the high LTV. Another   acceptable   form   of   security   for   a   Specialist   Loan   can   be   an   Investment   Bond   where   again,   specialist   legal   paperwork   can   be   drafted   allowing   the bond to effectively become the principal collateral for the loan. Aside   from   shares   and   bonds   other   forms   of   security   used   for   Specialist   Loans   can   be   very   diverse   and   range   from   businesses   plant   and   equipment   to   a High   Net   Worth   individuals   (HNW)   privately   owned   assets   such   as   cars,   jewellery   or   art.   Before   granting   a   loan,   the   lender   will   obviously   need   to   carefully assess the assets to be taken as security to determine their value. In   the   event   that   share   options   or   a   bond   are   to   be   used   as   the   principal   security   the   lender   will   almost   certainly   seek   specialist   legal   advice   to   perfect   the paperwork.   It   will   come   as   little   surprise   to   learn   therefore   that   Specialist   Loans,   given   their   slightly   unusual   nature,   will   generally   be   a   little   more   expensive than   standard   bridging   loans.   Despite   this   premium   however   they   can   be   incredibly   useful   to   borrowers   in   situations   where   they   would   otherwise   be   unable to borrow the monies they require. Still unsure and need to explore your options? Why not consult an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use   from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will   then tailor a solution that best suits your needs rather than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

It   is   sometimes   the   case   that   applicants   seeking   bridging   finance   simply do   not   have   enough   available   equity   in   their   property   assets   to   satisfy the   loan   to   value   (LTV)   requirements   of   mainstream   lenders.   High   Street lenders   with   conventional   funding   lines   need   to   respect   their   funding covenants, the rules by which their lending decisions are governed. By   contrast   lenders   with   a   more   diverse   funding   base   who   are   not   wholly reliant   on   institutional   funding   lines   can   sometimes   be   more   flexible   and consider     bespoke     security     structures.     They     can     look     beyond     just traditional    property-based    security.    What    forms    can    these    Specialist Loans take? One   form   of   Specialist   Loan,   perhaps   best   be   termed   as   a   Private   Equity Loan,    can    allow    applicants    to    offer    share    options    they    hold    as    the principal   form   of   security   in   instances   where   they   do   not   have   enough equity   in   their   property.   These   share   options   would   need   to   be   held   in   a FTSE or AIM listed company. In   these   instances,   the   lender   will   take   a   ‘legal   wrap’   around   the   options which   effectively   assigns   ownership   of   shares   if   the   loan   subsequently defaults.   As   an   additional   comfort   the   lender   will   probably   also   still   take a charge against the applicant’s property despite the high LTV. Another    acceptable    form    of    security    for    a    Specialist    Loan    can    be    an Investment   Bond   where   again,   specialist   legal   paperwork   can   be   drafted allowing   the   bond   to   effectively   become   the   principal   collateral   for   the loan. Aside   from   shares   and   bonds   other   forms   of   security   used   for   Specialist Loans    can    be    very    diverse    and    range    from    businesses    plant    and equipment   to   a   High   Net   Worth   individuals   (HNW)   privately   owned   assets such   as   cars,   jewellery   or   art.   Before   granting   a   loan,   the   lender   will obviously   need   to   carefully   assess   the   assets   to   be   taken   as   security   to determine their value. In   the   event   that   share   options   or   a   bond   are   to   be   used   as   the   principal security   the   lender   will   almost   certainly   seek   specialist   legal   advice   to perfect   the   paperwork.   It   will   come   as   little   surprise   to   learn   therefore that   Specialist   Loans,   given   their   slightly   unusual   nature,   will   generally   be a    little    more    expensive    than    standard    bridging    loans.    Despite    this premium     however     they     can     be     incredibly     useful     to     borrowers     in situations   where   they   would   otherwise   be   unable   to   borrow   the   monies they require. Still   unsure   and   need   to   explore   your   options?   Why   not   consult   an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record. We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business use   from   £250K   to   £2.5M   over   periods   from   3   to   24   months.   Our   loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks will   then   tailor   a   solution   that   best   suits   your   needs   rather   than   their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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SPECIALIST

BRIDGING LOANS

KNOWLEDGE BASE

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